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Major US Financials Cracking: CDS Rerack

Tyler Durden's picture





 

As financial equities are underperforming so we are also seeing the major US banks widening in CDS land - closer and closer to record wides in the case of BofA and GS. Their credit curves are also inverting further as equity catches up to recent weakness.

BofA is almost at record wides from early October 2011 - well ahead of 2008/9. GS also looks close to recent peaks though still below previous peaks for now. Goldman is 160bps wider since the start of November!

JPM +6 to 179bps

BofA +17 to 456bps

GS +14 to 410bps

MS +10 to 516bps

WFC +3 to 175bps

C +13 to 315bps

Charts: Bloomberg

 


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Wed, 11/23/2011 - 15:23 | Link to Comment GeneMarchbanks
GeneMarchbanks's picture

They're all hedged, it's cool.

MS especially. Also JPM is fine... bought CDS on itself just like GS.

Wed, 11/23/2011 - 15:23 | Link to Comment johngaltfla
johngaltfla's picture

LOL! Hedged with what? Greek CDS?

Wed, 11/23/2011 - 15:31 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

Hedged with Collateralized Bernanke Beard Trimmings I believe. 

Wed, 11/23/2011 - 16:13 | Link to Comment Hard1
Hard1's picture

Bought CDS on themselves!!!ROFL!!!....brilliant, now they cannot even go bankrutpt without collecting a windfall to pay the last goodbye bonuses.

Wed, 11/23/2011 - 21:10 | Link to Comment unununium
unununium's picture

The truth -- that they bought CDS on each other from each other -- is only slightly less ridiculous.

Wed, 11/23/2011 - 21:17 | Link to Comment Buck Johnson
Buck Johnson's picture

No way my good man, no way.  They are hedged with Italian bonds which they insured with Spanish bonds which are backed by Harrisburg Pennsylvania municipality bonds with CDS.  Everything is safe and secure.

Wed, 11/23/2011 - 15:27 | Link to Comment curbyourrisk
curbyourrisk's picture

To bad they were hedged through MF Global.

Wed, 11/23/2011 - 16:46 | Link to Comment SHEEPFUKKER
SHEEPFUKKER's picture

8-ball, corner pocket. 

Wed, 11/23/2011 - 23:42 | Link to Comment covert
covert's picture

hedged? it always is until default.

http://expose2.wordpress.com

 

Wed, 11/23/2011 - 15:21 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

 

 

But Dr. Bernanke just order more stress tests.  If we can't rely on the therapeutic value of diagnostics, then what can we rely on?

Wed, 11/23/2011 - 15:22 | Link to Comment GeneMarchbanks
GeneMarchbanks's picture

Mark-to-hallucination?

Wed, 11/23/2011 - 15:25 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

 

 

Unfortunately, this shit is all to real.  Mark it zero, Dude.

Wed, 11/23/2011 - 15:44 | Link to Comment iDealMeat
iDealMeat's picture

Mark-to-Masturbation.  It's all a big circle jerk after all..

Wed, 11/23/2011 - 15:24 | Link to Comment Amish Hacker
Amish Hacker's picture

The cleansing power of a full system reset?

Wed, 11/23/2011 - 15:29 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

 

 

Just lie on your left side, Uncle Sam.

Wed, 11/23/2011 - 15:30 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

Elbows on the table, Mr. Dimon...

Wed, 11/23/2011 - 15:43 | Link to Comment fuu
fuu's picture

"Moooon Riiiiiiveeeeeeeer"

Wed, 11/23/2011 - 15:48 | Link to Comment Papasmurf
Papasmurf's picture

Both barrels!

Wed, 11/23/2011 - 16:33 | Link to Comment Jena
Jena's picture

Ice water?!?  Cold in more ways than one...

Wed, 11/23/2011 - 15:22 | Link to Comment Cult_of_Reason
Wed, 11/23/2011 - 15:45 | Link to Comment Crack-up Boom
Crack-up Boom's picture

Thanks for the link!

Wed, 11/23/2011 - 15:24 | Link to Comment BennyBoy
BennyBoy's picture

They are passing the FED stress test with flying colors.

Just look at their high scores in the above charts!

Wed, 11/23/2011 - 15:24 | Link to Comment BW
BW's picture

If they blow up they make money.

Wed, 11/23/2011 - 15:32 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

Is it incest if these guys all underwrite each others CDS's? 

No one expects to get paid on these things in the imaginary event of default, right?

Wed, 11/23/2011 - 15:26 | Link to Comment Dick Darlington
Dick Darlington's picture

Goldman is 160bps wider since the start of November!

Maaaaaa! Meatloaf and beer! Now! It's party time!

Wed, 11/23/2011 - 15:29 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

It's beginning to look a lot like 2008, everywhere I go...

Wed, 11/23/2011 - 15:31 | Link to Comment dcb
dcb's picture

14:30 weds pre thanks giving. we just hit my taget reentry point using speed lines

Wed, 11/23/2011 - 15:36 | Link to Comment mayhem_korner
mayhem_korner's picture

my taget reentry point

 

A bit too Bawnie Fwank-ish sounding.  Just sayin'...

Wed, 11/23/2011 - 15:46 | Link to Comment DogRockets
DogRockets's picture

Eat my shorts, a-hole. 

Wed, 11/23/2011 - 16:18 | Link to Comment HD
HD's picture

No bailout. Nationalize them for two years, then break them up into a half a dozen not TBTF banks.

Wed, 11/23/2011 - 15:32 | Link to Comment The Axe
The Axe's picture

I don't believe the volume, to me it feels like shorts pressing.... So...in my humble opinion ....I nice buying opportunity.. market feels washed out.....just bot 10000 C  

Wed, 11/23/2011 - 15:41 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

 

 

...to me it feels like shorts pressing...

...just bot 10000 C

Feelings, nothing more than feelings,
Trying to forget my feelings of Bove.
Teardrops rolling down on my face,
Trying to forget my feelings of Bove.

Feelings, for all my life I'll feel it.
I wish I've never met you, Dick; I'll never be long again.

http://www.cnbc.com/id/42937720/Citigroup_Can_Triple_by_2013_Dick_Bove

Wed, 11/23/2011 - 15:47 | Link to Comment The Axe
The Axe's picture

Now now boys....life is a gamble....  I hope to reap some rewards....Just my thoughts.... and my money....

Wed, 11/23/2011 - 15:52 | Link to Comment scatterbrains
scatterbrains's picture

It does feel like one of those inflection points.. would prefer to see C dip below the recent low intraday, then close higher while its RSI is all coiled up bullishly.  Also I noticed TLT is not being supported by RSI up here and suggests it's time to head lower.

Wed, 11/23/2011 - 15:59 | Link to Comment GeneMarchbanks
GeneMarchbanks's picture

Axe & sb,

I commend your brave risk taking. I also commend your admitting it here on ZH. You're both brave. Or deranged. Best of luck.

Wed, 11/23/2011 - 16:46 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

 

 

May 6, 2011 when BAC at $12.31

 "I don't see any reason why Bank of America is not going to double from the current price," Bove says.

Down -53% to date to $5.18  Missed it by that much.

Wed, 11/23/2011 - 15:40 | Link to Comment GeneMarchbanks
GeneMarchbanks's picture

'just bot 10000 C'

I hope you're joking or you don't know what you're saying... for your sake.

Wed, 11/23/2011 - 15:37 | Link to Comment lolmao500
lolmao500's picture

Die goldman, DIE MOTHERFUCKING DIE.

Wed, 11/23/2011 - 15:48 | Link to Comment MFL8240
MFL8240's picture

Can you think of anything we can do to help implode GS and JPM?  I'm in.

Wed, 11/23/2011 - 18:03 | Link to Comment Dingleberry
Dingleberry's picture

A-FUCKING-MEN!!!!!!!!!!!!!!!!!!!!

Wed, 11/23/2011 - 15:39 | Link to Comment gatorengineer
gatorengineer's picture

The Squid is sick, should we take it to a vet?

Wed, 11/23/2011 - 15:41 | Link to Comment GeneMarchbanks
GeneMarchbanks's picture

Deep fryer methinks.

Wed, 11/23/2011 - 15:53 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

I like to imagine Chief Brody tossing Goldman chum off the back of the Orca.  :D

Wed, 11/23/2011 - 15:42 | Link to Comment slaughterer
slaughterer's picture

Omitted by author  

Wed, 11/23/2011 - 15:41 | Link to Comment slaughterer
slaughterer's picture

TBTF is now ready to die.  

Wed, 11/23/2011 - 15:42 | Link to Comment holmes
holmes's picture

This just in from Dicked Bove:

You people are morons; buy B of A.

 

Wed, 11/23/2011 - 15:44 | Link to Comment slaughterer
slaughterer's picture

And yet, no climax panic-selling in the equities of TBTF.  Just a slow, steady erosion.  

Wed, 11/23/2011 - 15:50 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

Major awareness gap.  You've got CNBC reporting that Gold is tracking equities (guess they missed that one's up 20% for 2011 and the other is flat to down).  Truth and information still separated by a huge chasm. 

Wed, 11/23/2011 - 15:55 | Link to Comment GeneMarchbanks
Wed, 11/23/2011 - 15:45 | Link to Comment Critical Path
Critical Path's picture

$0.14 left to spare for BAC oh me oh my

Wed, 11/23/2011 - 15:46 | Link to Comment sitenine
Wed, 11/23/2011 - 15:47 | Link to Comment Cone of Uncertainty
Cone of Uncertainty's picture

I'm guessing Brian Moynihan just shart himself.

Wed, 11/23/2011 - 16:41 | Link to Comment Deadpool
Deadpool's picture

how's that Uncle Warren trade working out? and where is he on the Goldman bail out of '08? GE, Harley D?

Wed, 11/23/2011 - 15:48 | Link to Comment Stockmonger
Stockmonger's picture

This is going to give US banks record profits as they profit hand-over-fist from the crashing market values of their debt!

Wed, 11/23/2011 - 15:50 | Link to Comment youngman
youngman's picture

So who wants to own bank stock over this weekend...or Insurance stock...or a Greek bond over this weekend....???? not me...I gots me gold matey...eh barros o Rum

Wed, 11/23/2011 - 15:53 | Link to Comment peekcrackers
peekcrackers's picture

CDS are like herrpies ...They  Flair up under stress .

Wed, 11/23/2011 - 15:55 | Link to Comment Dr. Engali
Dr. Engali's picture

15 more pennies and BAC has a four handle. Time for a revese split.

Wed, 11/23/2011 - 15:56 | Link to Comment monopoly
monopoly's picture

Why would anyone with 1/2 a brain and an IQ over 50 ever invest in a broken bank. You have no idea what is on or off their books, they change the numbers at will and the model is completely broken.

You want to take a bet, go to Las Vegas, the 6 block strip is lit up and the girls are pretty. Just do not go much outside the strip, we are in a depression here.

Wed, 11/23/2011 - 16:24 | Link to Comment earleflorida
earleflorida's picture

poor 'mr. macau's, s.wynn, and s. adelson 

Wed, 11/23/2011 - 17:16 | Link to Comment Use of Weapons
Use of Weapons's picture

Living in the middle of a desert with extremely vulnerable power, water and food infrastructure is not where I'd choose to be when TSTF.

 

Brave.

Wed, 11/23/2011 - 21:38 | Link to Comment DosZap
DosZap's picture

Use of Weapons

Lake Mead,animals,birds,and I would far rather be there than in Dallas,SF,NYC,etc,etc,where the animals will be two legged

You know it's coming stock up, and pile it on.

Many places to hide, and cache supplies, and weapons.

Wed, 11/23/2011 - 15:58 | Link to Comment monopoly
monopoly's picture

TBT to lifetime low? wow.

Wed, 11/23/2011 - 15:59 | Link to Comment Motorhead
Motorhead's picture

Ah, but don't worry.  These banks/financials are backed by the full faith and credit of the American tax payer.

 

Wed, 11/23/2011 - 16:05 | Link to Comment slaughterer
slaughterer's picture

Just bought 100,000 shares of BAC at $5.14.

Wed, 11/23/2011 - 16:10 | Link to Comment Critical Path
Critical Path's picture

Balls of steel going into the holiday, good luck to you sir. 

Wed, 11/23/2011 - 16:40 | Link to Comment Deadpool
Deadpool's picture

somehow I doubt if you have $500k to lose you're spending time on ZH.

Wed, 11/23/2011 - 18:05 | Link to Comment Dingleberry
Dingleberry's picture

Next time buy MF Global.....

Wed, 11/23/2011 - 16:10 | Link to Comment dcb
dcb's picture

uup target also hit at target 22.30 (based on weekly ascending triangle. )

Wed, 11/23/2011 - 16:33 | Link to Comment azzhatter
azzhatter's picture

Oh please! I saw Dickless Bove on Kudblow last night and he said BOFA is fine, great, well capitalized even if the common goes to zero.

Wed, 11/23/2011 - 16:45 | Link to Comment Motorhead
Motorhead's picture

Was that f'in chump Oy-vey Bove' really on Kudlow last night? (I don't get CNBC here.)  F-me, man, that chump just won't go away.  But then again, he's probably a great contrarian play.

Wed, 11/23/2011 - 16:52 | Link to Comment Deadpool
Deadpool's picture

I'm sure they have a hard time getting real guests anymore. especially a week like this...and I'm sure BofA pays him a retainer. Remember CNBC was a creditor of MF Global. all for one and one for all.

Wed, 11/23/2011 - 19:27 | Link to Comment Ted Baker
Ted Baker's picture

WHERE IS THIS ASSHOLE CALLED BOVE AND HIS BUY RECOMMENDATION ON US BANKS..ALL THESE US BANKS ARE GOING BUST MAN...GET THE PARTY STARTED!!!!!!!!!

Thu, 11/24/2011 - 04:00 | Link to Comment Grand Supercycle
Grand Supercycle's picture

USD selling pressure continues and the prospect of an equity xmas rally and EURUSD bullish spike returns.

http://stockmarket618.wordpress.com

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